In a bid to boost air connectivity in the state, Arunachal Pradesh government has reduced the value-added tax (VAT) on sale of aviation turbine fuel (ATF) to 1 per cent from 20 per cent.
A notification from the state tax and excise department on Tuesday said the rate of tax in respect of ATF for all categories of service would be reduced from 20 per cent to 1 per cent.
“In exercise of powers conferred under Sub-Section (2) of Section 4 read with Section 104 of the Arunachal Pradesh Goods Tax Act 2005, the Governor of Arunachal Pradesh is hereby, pleased to reduce the rate of tax in respect of Air Turbine Fuel (ATF) for all categories of service from 20 per cent to 1 per cent,” the notification dated April 10 read.
Union Civil Aviation Minister Jyotiraditya M Scindia who was among the first to welcome the decision took to Twitter to share his appreciation.
“A warm welcome by Arunachal Pradesh CM Sh @PemaKhanduBJP, along with great news! The State govt. has taken the progressive step to reduce VAT on Air Turbine Fuel from 20% to 1%. This significant cut marks the beginning of an era of greater connectivity & new frontiers for the State,” he said.
